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Business, 28.05.2020 06:01 twinchristiansp4xhd2

Daniel, age 38, is single and has the following income and expenses in 2019: Salary income $60,000 Net rent income 6,000 Dividend income 3,500 Payment of alimony (divorce finalized in March 2019) 12,000 Mortgage interest on residence 9,900 Property tax on residence 1,200 Contribution to traditional IRA (assume the amount is fully deductible) 5,000 Contribution to United Church 2,100 Loss on the sale of real estate (held for investment) 2,000 Medical expenses 3,250 State income tax 300 Federal income tax 7,000 Daniel's standard deduction for 2019 is $12,200. a. In order to calculate Daniel’s AGI, classify the following expenses as either "Deductible for AGI", "Deductible from AGI", or "Not deductible". Payment of alimony Not deductible Mortgage interest on residence Deductible from AGI Property tax on residence Deductible from AGI Contribution to traditional IRA (assume the amount is fully deductible) Deductible for AGI Contribution to United Church Deductible from AGI Loss on the sale of real estate (held for investment) Deductible for AGI Medical expenses Deductible from AGI State income tax Deductible from AGI Federal income tax Not deductible What is Daniel's gross income and his AGI? Gross income: $ 69,500 AGI: $ 0 Feedback b. Should Daniel itemize his deductions from AGI or take the standard deduction? Because Daniel's total itemized deductions (after any limitations) are $ 13,500 , he would benefit from itemizing his deductions .

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Daniel, age 38, is single and has the following income and expenses in 2019: Salary income $60,000 N...
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